**Forex Technical Major Pairs Analysis – July 18, 2025**
*Original Author: Kukil Bora*
The foreign exchange market continues to provide traders with ample opportunities and evolving technical setups. On July 18, 2025, the spotlight remains on the major currency pairs, as global macroeconomic developments, central bank policies, and evolving risk sentiment shape market direction. Investors and traders should pay close attention to technical signals, key support and resistance levels, and broader market trends as they plan their trading strategies.
Below, we present a comprehensive technical analysis of major currency pairs, highlighting current price action, potential trade setups, and important chart patterns. This in-depth guide is based on the latest available data and charts, and is designed to inform both experienced traders and those new to forex markets.
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## EUR/USD
**Overview:**
The EUR/USD pair, as the world’s most traded forex pair, displays ongoing sensitivity to both US Federal Reserve and European Central Bank policies, as well as emerging economic data from both the Eurozone and the United States.
**Technical Outlook:**
– **Short-term Trend:** EUR/USD has been consolidating within a tight range after a period of volatility. The pair faces immediate resistance around the 1.1150 level, with key support appearing near 1.1070.
– **Moving Averages:** The 50-day simple moving average (SMA) trades above the 200-day SMA, indicating a medium-term bullish bias. However, the price action is hovering around the 50-day SMA, suggesting some indecision.
– **Momentum Indicators:** The Relative Strength Index (RSI) is positioned near the neutral 50 level, signifying a lack of strong momentum in either direction.
– **Key Chart Patterns:** A symmetrical triangle pattern is evolving on the 4-hour chart, hinting at a potential breakout. A close above 1.1150 could pave the way toward 1.1200, while a break below 1.1070 could see the pair revisit the 1.1000 psychological mark.
**Actionable Insights:**
– Watch for sustained moves above 1.1150 or below 1.1070 for directional clues.
– Bullish traders may seek buying opportunities on a confirmed breakout higher.
– Bearish traders might wait for breakdowns below support, targeting previous lows.
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## GBP/USD
**Overview:**
GBP/USD continues to react to a dynamic environment shaped by UK inflation numbers, Bank of England comments, and evolving economic expectations.
**Technical Outlook:**
– **Price Dynamics:** The British pound is trading just beneath important resistance at 1.3020, struggling to maintain bullish momentum after a recent rally.
– **Key Support and Resistance Levels:**
– Immediate resistance at 1.3020
– Short-term support at 1.2950 and stronger support around 1.2880
– **Moving Averages:** The pair remains above both its 50-day and 200-day SMAs, though upward momentum is cooling.
– **Momentum Indicators:** The RSI is trending lower from overbought territory, indicating a possible short-term pullback.
– **Chart Patterns:** No clear pattern is dominant currently, but price action suggests potential for range trading in the near-term.
**Actionable Insights:**
– Range traders may find opportunities between the 1.3020 resistance and the 1.2880 support.
– Breakouts or breakdowns could offer new trend-following entry points.
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## USD/JPY
**Overview:**
The USD/JPY pair remains influenced by divergent monetary policies, with a dovish Bank of Japan contrasting with a still-tight US Federal Reserve stance.
**Technical Outlook:**
– **Current Trend:** USD/JPY has recently surged, testing the 158.00 level as traders respond to yield differentials and risk-sentiment shifts.
– **Support and Resistance:**
– Resistance at 158.50
Read more on GBP/USD trading.